A new model of a racecar manufactured in Germany sells successfully in China. This will cause the:
a. euro to appreciate against the Chinese Yuan.
b. euro to devaluate against the Chinese Yuan.
c. Chinese Yuan to appreciate against the euro.
d. Chinese Yuan to devaluate against the euro.
a
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Which of the following is the most likely to cause the price of air travel to rise?
a. Lower prices and improved service in Amtrak (the nation's passenger railroad). b. Improved productive efficiency resulting from airline mergers. c. Higher airplane fuel costs. d. Reports that air travel safety is deteriorating.
Why would an increase in the minimum wage to $15 per hour lead to more unemployment for teenage and low-skilled workers?
What will be an ideal response?
Japan's protection of its semiconductor (RAM) producers is today seen as an object lesson in
A) how strategic planning may backfire and cause a large waste of resources. B) how externalities may be successfully exploited by protectionist policies. C) how excess returns may be successfully exploited by protectionist policies. D) how government intervention may create a meaningful comparative advantage. E) how monopolies can outlast government intervention.
Supporters of globalization argue that multinational firms pay higher wages than local firms, and provide greater benefits for workers than existed in the country prior to globalization
a. True b. False Indicate whether the statement is true or false